Dalia Blass, SEC’s director of the division of investment management, detailed the concerns in a Jan. 18 letter to two trade groups representing fund managers with proposals for funds holding bitcoin or related assets. The division demanded answers for at least 31 questions on how bitcoin-themed mutual funds or exchange-traded funds would price, store and safeguard the asset.
“There are a number of significant investor protection issues that need to be examined before sponsors begin offering these funds to investors,” according to the letter.
Last year, Bitcoin grew 1,500 percent, rallying investor demand. Now, several companies want to launch exchange-traded funds to open up the cryptocurrency to a retail market, Reuters reports.
More articles on business:
5 states with the most business bankruptcies in 2017
Airbus sales beat Boeing’s for 5th consecutive year
Goldman Sachs and others invest $38M in tech startup
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.